Hermes-Otto International USA acquires Bombay Brands
Deal excludes Canadian assets
Clint Engel -- Furniture Today, January 11, 2011
Under the Hilco-Gordon Brothers partnership, Hermes-Otto — the U.S. division of global fashion and lifestyle company Otto Group — was the exclusive North American licensee of Bombay products. The purchase now gives it direct global control of the home furnishings brand.
"With its potent blend of classic styling and unexpected detail, The Bombay Company continues to be a vital, highly-recognized brand in the U.S.," said Hermes-Otto President Wil Hollands, a former Bombay Company executive, who now leads the home furnishings company. "Through Hermes-Otto International's extensive sourcing and sales networks and my own long-term experience with Bombay, we plan to grow the brand by creating new and classic Bombay products and developing long-term partnerships with key retailers."
Once listed among Furniture/Today's Top 100 U.S. furniture stores, the original Fort Worth, Texas-based Bombay grew to nearly 500 stores and annual sales approaching $600 million before collapsing into bankruptcy in 2007 and subsequently selling off its Canadian assets and liquidating its U.S. stores.
A joint venture between Hilco and Gordon Bros. acquired the intellectual property, excluding Canadian assets, in 2008 and relaunched the brand. This past August, the new Bombay introduced what it called its first full collection, a 250-piece assortment of small furniture, home decor, gifts and textiles.
Hollands, a former vice president of merchandising for the original Bombay, has since announced plans to introduce a 50- to 60-piece collection of large-scale furniture this spring, featuring new looks as well as classic Bombay pieces.
Gordon Brothers CEO Stephen Miller said the company "is pleased with the transition," and, "After working with the firm as the exclusive licensee, we feel confident that the brand's integrity and enterprise value will be protected. We look forward to following the growth of The Bombay Company as it continues to expand into additional distribution channels."
The deal does not include Bombay and Co. Inc., a company that has exclusive right to sell Bombay products in Canada.
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